Downtown Santa Cruz has always been a place of evolution. From rebuilding after the Loma Prieta earthquake to today’s rise in mixed-use development, our downtown has continually adapted to meet the moment. And while change often brings challenges, it also creates new opportunities. Downtown Santa Cruz is growing, shifting, and full of potential.
We’re seeing an exciting transformation as new housing is built, and more residents begin to call Downtown Santa Cruz home. At the same time, our business community continues to evolve, responding creatively to lasting shifts brought on by the pandemic. Across the country, cities are redefining the role of downtown, no longer just centers of office life, they’re becoming vibrant places to live, shop, connect, and create.
The way people engage with businesses is changing. Remote work, online shopping, and new daily rhythms mean local businesses must offer more than products; they must offer experience. In Santa Cruz, that’s exactly what they’re doing.
The pandemic tested our business community, and while over 30 downtown businesses closed during the height of COVID-19, our rebound has been remarkable. According to Placer.AI, downtown foot traffic is back and exceeding pre-pandemic levels, and since 2022, over 70 new businesses have opened their doors in Downtown Santa Cruz.
This resilience speaks to the strength, creativity, and adaptability of our local entrepreneurs. As more of our lives move online, people are craving authentic, in-person experiences. So, how is that playing out here in Santa Cruz?
With 340 new housing units completed and more than 1,400 additional units in the pipeline, downtown is becoming home to thousands of residents. What was once a destination is becoming a daily neighborhood hub; walkable, and full of life. For those living car-free, downtown is their go-to for everything from shopping and dining to entertainment and community gatherings.
And if there’s one thing Santa Cruz never seems to have enough of, it’s coffee. However, there is perhaps nowhere with a line longer or more consistent than the one at 11th Hour Coffee. 11th Hour Coffee is a place where locals feel at home and visitors can feel like locals. The character of this space is indicative of what makes the soul of downtown Santa Cruz so unique. As more urban centers carry the same few retailers, Santa Cruz local businesses are holding strong, their niche appeal draws people to find something you can’t find online, a sense of place.
When asked what owning a business in downtown Santa Cruz means to 11th Hour co-owner Joel Estby replied that, “I think it means creating a space for the community. You can sell something, but I don’t think that’s enough nowadays. People can go online to buy something, so you have to be a space people want to come to.”
What began as a coffee kiosk in the shared Food Lounge space has grown into a dynamic community hub. Today, four businesses share the space: 11th Hour and After Hours, plus food tenants Full Steam Dumpling and Chubb’s Chicken. This shared model is catching on across Santa Cruz, seen in successful current and past partnerships like Hanloh Thai Food at Bad Animal and Bookies inside Sante Adairius.
Estby described that the benefit of letting different operators control different facets of a space is that everyone can play to their strengths and create a great product. By allowing for multiples uses in one commercial space a business can expand both its appeal and its hours of operation–allowing people of all ages and interest to find their niche.
“You’re renting, prime real estate in downtown Santa Cruz, and if it’s not activated for half the day, that could be tough. So having this space utilized all day, without having to be the one doing it the entire time, I think is a win-win for everybody.” Said Estby.
11th Hour is more than a coffee shop, it’s a “third space,” a vital community gathering spot that’s neither home nor work. It’s where people run into friends, start conversations, and build community.
As Joel puts it, “The energy that community brings, just like actually talking to people in person and having conversations and getting to know people’s faces or walking down the street and saying hi to people…having spaces where people do congregate and have those micro interactions on a daily basis is, how you build an actual community. Not just be online, having places where people can have meetings and still see people, is huge.”
This kind of connection is showing up all over downtown. From new spots like Game Santa Cruz (a retail store and board game café) to community events like Drag Storytime at Childish, trivia nights at Lupulo, and music in Abbott Square, there’s a growing sense of energy and togetherness.
The familiar landmarks of downtown are taking on new life, with new tenants and activation slated for three of downtown’s largest retail spaces. These include the recently announced Anthropologie moving into 1134 Pacific Avenue (formerly New Leaf) as well as two temporary pop-up marketplace activations filling vacant storefronts. The City of Santa Cruz Economic Development Department is thrilled to partner with two local event producers through our Downtown Pops program to activate these large vacant spaces and bring several dozen makers into the downtown core with these pop-up activations.
Shopping downtown just got extra artsy! Organizer of the Santa Cruz Mountain Maker’s Market and First Friday, Bree Karpavage, will open the doors of 1407 Pacific Avenue (former Palace Arts space) once again for a weekend holiday makers market pop-up beginning November 28th, and continuing each weekend through the end of December. Each weekend will feature 25+ local makers & artists. Enjoy the market from 10am to 5pm, Friday, Saturday and Sunday through December 21st. Learn more here.
Beginning December 20th and 21st, local event curators Collective Santa Cruz will be holding their first indoor event at 1117 Pacific Avenue (the former Logos Bookstore). The Holiday Marketplace is the first of a monthly series in this location from December through February. This fun and festive event will allow you to explore local vendors and sip on Humble Sea beer in this one-of-a-kind space. Check out the Holiday Marketplace at 1117 Pacific Avenue from 11am to 5pm, Saturday and Sunday December 20th and 21st. Learn more here.
As Downtown continues to evolve, one thing is clear: adaptation is our strength. Downtown Santa Cruz is doing just that. It’s not just changing; it’s growing into a place shaped by and for its people.
